Upstream Petroleum Regulator Remits N7.1trn Revenue In 8 Months

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) remitted a total of N7.1 trillion to the Federation Account in the first eight months of 2025.

The remittance underscored NUPRC’s critical role in revenue mobilisation from Nigeria’s upstream oil and gas sector.

This is was revealed during the NUPRC’s presentation at the Federation Account Allocation Committee (FAAC) meeting on September 17.

According to the report, the NUPRC transferred N745.2 billion to the Federation Account in August alone, achieving 61.85 percent of its monthly target of N1.2 trillion.

The August remittance showed a 3.05 percent increase compared to the N723.1 billion recorded in July, indicating modest but steady progress.

Breaking down the August collections, oil and gas royalties constituted the largest share at N682.28 billion, followed by gas flare penalties amounting to N52.9 billion.

Rentals, licenses, and miscellaneous revenues contributed an additional N10 billion.

All funds collected were duly forwarded to the Federation Account as mandated by law.

From January to August 2025, the cumulative transfers coordinated by the Central Bank of Nigeria (CBN) amounted to N5.47 trillion, part of the total N7.1 trillion revenue performance that encompasses joint venture royalties, Production Sharing Contract (PSC) receipts, and payments under Project Gazelle—a long-term crude oil production agreement.

Despite these achievements, the NUPRC’s report also highlights challenges that continue to affect the industry’s revenue flow. Structural issues such as pipeline vandalism, crude theft, and technical constraints have hampered production levels.

Furthermore, fluctuating global crude oil prices have introduced fiscal uncertainties, complicating revenue forecasting and collection efforts.

Significant outstanding payments remain a concern. Project Gazelle royalties for December 2024, as well as for February, July, and August 2025, were not remitted in August.

The report also notes an unpaid sum of N6.61 trillion in joint venture royalties owed by the Nigerian National Petroleum Corporation (NNPC) between October 2022 and August 2025, signaling the need for stronger compliance enforcement and monitoring.

The NUPRC also said it has made progress in recovering some overdue debts, collecting $41.89 million in August from cumulative amounts owed by PSCs, Deep Offshore and Inland Basin Contracts, and Risk Service Contracts.

However, $1.42 billion remained outstanding, highlighting the persistence of revenue recovery challenges.

The NUPRC’s substantial remittances over the eight months reflect ongoing efforts to sustain Nigeria’s fiscal base despite upstream operational and compliance hurdles.